MANUFACTURING AND ENGINEERING: SMEs Opportunities and Challenges for Indian and Japanese SME’s
Panelists: Sandeep Dhupia, Executive Director, KPMG India, India Nobuyuki Nagashima, Director-General, Invest Japan Department, JETRO, Japan Sushil Muhnot, Chairman and Managing Director, Small Industries Development Bank of India (SIDBI), India T.L. Satyaprakash, Director of Industries & Commerce, Haryana, India Hiromi Suzumura, Internationalization Support Adviser, SME Support, Japan
Go Yamada, Senior Economist, Asian Research Department, Japan
• Japanese SME’s need to focus on overseas market, overseas demand and look at vertical integration, and industrial sub contracting
Center for Economic Research, Japan
• Indian SME’s need to target Japanese markets and move up the value chain than need to focus on value added production in conversation been having with some Indian companies
Masanori Kondo, Senior Associate Professor, Division of International Studies, International Christian University, Japan
The session focused on the problems in the Indian SME sector and also opportunities for Japanese SMEs to do business in India. Two biggest challenges that SME’s in India face is financing and technology. The Japanese SME’s are equipped with high technologies can find room to do business in Indian market. SIDBI and NSIC are well positioned to help Japanese investors to come over into India to in terms of providing advisory support services. Japan and India, both in terms of providing complementarities can take advantage of technology, capital, skilled manpower brought to the Indian context in terms of taking advantage of the markets available there.US is the biggest country to make investment in Japan, and the Holland among others and fifth is Singapore, 10th is Hong Kong. Direct investment from India to Japan is 3.3 billion yen; in terms of the value it’s still low.
• There is a role that Indian SME’s has to play, you need to build trust with Japanese companies, you need to invest management skills • Cluster based approach for MSME’s developed will provide lot of opportunities to Japanese technology experts and also consultant companies and also for joint ventures • Opportunity exists for Japanese SME’s in India’s market, healthcare and tourism.
• Need for well developed technology, financing and business models of training and Japan can be technology suppliers and first as joint venture collaborators and also on skilled development side as the strategic partners.